Subhasankar Chattopadhyay

Bio: Subhasankar Chattopadhyay is an academic researcher. The author has contributed to research in topics: General equilibrium theory & Investment (macroeconomics). The author has an hindex of 1, co-authored 1 publications receiving 2 citations.

Investment and wage gap in India: a general equilibrium analysis

Abstract: This paper aims to theoretically find out whether investments could close the formal-informal wage gap in India.,The paper builds a general equilibrium model of a developing economy with a large informal sector and a capital-intensive formal sector with sector-specific capital and incorporates endogenous demand.,With homothetic preferences, a small initial wage premium and elastic relative demand, investment in the formal sector is likely to close the wage gap, but the gap persists with non-homothetic preferences. However, investment in the informal sector is unlikely to close the wage gap with either type of preferences.,Though labour market distortions in developing economies leading to a formal-informal wage gap are well-documented in the development literature, little attention has been given to the question of whether such a gap would close over time.

The Stolper-Samuelson Theorem in a Wage Differential Framework

Abstract: We develop a wage differential model with a unionized and a non-unionized informal sector for a small open economy. The unionized wage rate adjusts to a cost of living index and the informal wage is market-determined. In this structure, a Stolper-Samuelson type result holds without any assumption regarding factor-intensity ranking.

Time zone difference, skill formation and corrupt informal sector: the role of virtual trade

Abstract: This paper uses competitive general equilibrium model of trade for small open economy with informal sector to check the possible effects of virtual trade. We show that skilled labors and educational capital owners benefit from virtual trade. The service sector expands while the formal and informal sector contract along with the number of people engaged in corruption-related intermediation. Following this, we also check the effect of a fall in the extent of cost of corruption. Results show an increase in unskilled wage and outflow of educational capital thus hurting the skill-intensive sector. We proceed further to club the effects of both virtual trade and fall in intermediation cost, and explore the consequences. Though, both skilled and unskilled labors benefit, the effect on output and intermediators, however, is ambiguous. We then modify the basic model to endogenize the cost of corruption, include punishment aspect of intermediators, etc. In this case, owing to time zone difference exploitation, we experience an increase in wage of both types of labor, an expansion of the service sector and contraction of the informal sector. Interestingly, the cost of intermediation rises while the number of intermediators falls in the extended model.

Does Informal Sector Suitable for Female Labor?

Abstract: The existence of SDGs program which supported by the demographic bonus era provides potential for female labor force, but the fact in Indonesia is that there is an inequality in the number of working female labor force compared to men, especially the field of work dominated by women is threatened by industrial automation 4.0. The purpose of this study is to analyze how the characteristics of women to the opportunities in the informal and formal job that seen from age, marital status, wages, length of education taken, ethnicity, and area of residence. The method used in this study is binary logistic regression with IFLS 5 data sources. The results showed that women who decided to work in the informal sector were women of older age, married women, women who studied longer, women with Batak and Sasak ethnicities, and women who lived in rural areas. The Indonesian government is expected to be able to improve policies for informal sector workers including decent wages, social security and health, and legal protection in order to achieve Indonesian goals according to SDGs agenda.